Wondershare(SZ:300624) GOLDEN SUN SECURITIES·2024-04-29 06:02Investment Rating - The report maintains a "Buy" rating for the company [2][16]. Core Insights - The company's performance in 2023 and Q1 2024 met expectations, with a significant focus on digital creativity and embracing AIGC (Artificial Intelligence Generated Content) [16]. - In 2023, the company achieved a revenue of 1.481 billion yuan, a year-on-year increase of 25.49%, and a net profit attributable to shareholders of 86 million yuan, a year-on-year increase of 113.20% [16]. - The main revenue driver was the video creativity segment, which generated 961 million yuan, a year-on-year increase of 28.91%, accounting for 64.87% of total revenue [16]. - The company has launched several new AI-driven products and features, enhancing its product offerings in the digital creativity space [16]. Financial Summary - Revenue Growth: The company expects revenues to grow from 1.775 billion yuan in 2024E to 2.467 billion yuan in 2026E, with year-on-year growth rates of 19.9%, 18.3%, and 17.5% respectively [6][16]. - Net Profit: The forecasted net profit for 2024E is 111 million yuan, increasing to 182 million yuan by 2026E, with growth rates of 28.7%, 28.4%, and 27.9% respectively [6][16]. - Earnings Per Share (EPS): EPS is projected to rise from 0.81 yuan in 2024E to 1.32 yuan in 2026E [6][16]. - Valuation Ratios: The P/E ratio is expected to decrease from 112.9 in 2024E to 68.8 in 2026E, while the P/B ratio is projected to decline from 8.8 to 7.3 over the same period [6][16]. Business Performance - The company has shown improvements in cost control, with reductions in sales, management, and R&D expense ratios compared to the previous year [16]. - The subscription renewal rate for video creativity products increased by 5 percentage points, and active users in the drawing creativity segment grew by approximately 30% year-on-year [16]. - The company is actively developing large models for various AI capabilities, including video, audio, and language, and has launched several innovative digital creative products [16].